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India Exim Bank’s PAT jumps more than 50% in FY 2019-20

Mr. David Rasquinha, Managing Director and Ms. Harsha Bangari, Deputy Managing Director, Export-Import Bank of India (India Exim Bank), announced the Bank’s results for the financial year 2019-20 through a virtual press conference in Mumbai on Thursday, June 25, 2020.

Key highlights of the Bank’s performance during 2019-20 are as under:

BUSINESS PERFORMANCE

  • Lines of Credit (LOCs): During the year, the Bank extended 27 LOCs, aggregating USD 3.40 billion, to support export of projects, goods and services from India. The Bank has built up a portfolio of 259 GOI-LOCs with credit commitments aggregating USD 25.46 billion which are at various stages of implementation. With ever expanding reach, the LOCs have gained momentum in stimulating economic growth across 64 countries in Africa, Asia, Latin America, Oceania and the CIS region.
  • Project Exports: During FY 2019-20, India Exim Bank has supported 38 project export contracts valued at USD 2.81 billion under its commercial window. Some major project exports contracts supported by the Bank during the year include roadways project in Bangladesh; refinery complex project in Nigeria; power transmission projects in Nicaragua and Togo; South West Gas Field Development Project in Algeria; development of container terminal at the Yangon port, Myanmar; solar 190 MW DC photovoltaic plant in Chile; installation and commissioning of pumps in Suriname.
  • Buyers’ Credit under National Export Insurance Account (BC-NEIA): An amount of USD 331.58 million was disbursed during the year under the sanctioned facilities, and the outstanding BC-NEIA portfolio stood at USD 1.35 billion as on March 31, 2020. Some key projects include water treatment plant in Sri Lanka, LPG storage facility at the Beira Port in Mozambique; supply of vehicles to Cote d'Ivoire, Senegal and Tanzania; transmission line projects in Cameroon, Mauritania, Senegal, Zambia and Kenya; railway line project in Ghana; irrigation project in Suriname; water supply projects in Uganda and Cameroon; and other projects in Maldives, Zambia and Ghana. The Bank has also given in-principle commitments aggregating to USD 3.53 billion for supporting 28 projects, under BC-NEIA, at the behest of several leading Indian project exporters.
  • Overseas Investment Finance: During FY 2019-20, 16 corporates were sanctioned funded and non-funded assistance aggregating ` 2,837 crore for part financing their overseas investments in 8 countries. Overseas investments supported during the year include setting up of a manufacturing facility in Morocco for the production and supply of auto components; working capital for a plant manufacturing oleoresins in China; setting up of units in the USA for the manufacture of Intermediate Bulk Container bottles and drums; setting up of a Calcined Petroleum Coke manufacturing project with captive power generation in the Sultanate of Oman.

RESOURCES & TREASURY

  • During FY 2019-20, the Bank raised foreign currency resources aggregating USD 1.91 billion equivalents. The raising of resources was done through a variety of instruments.
  • In January 2020, India Exim Bank raised USD 1 billion for 10-year tenor at a coupon of 3.25% p.a. in the 144A/Reg-S format.  The transaction marked the lowest coupon from any Indian issuer for a 10-year USD issuance. The issue attracted a total order book in excess of USD 2.7 billion at close, thereby achieving more than 2.7 times subscription from 184 high-quality investors.
  • In October 2019, the Bank issued its first ever USD-denominated Socially Responsible Bond for USD 50 million. The bond is named as Socially Responsible Mekong Region Development Bond considering allocation of funds to infrastructure projects from Cambodia, Myanmar and Vietnam. The 3-year bond was issued at a fixed coupon of 2.385 % per annum.
  • In September 2019, the Bank successfully returned to the Samurai Bond Market and issued a dual tranche JPY 32 billion transaction consisting of 3-year and 5-year fixed rate tranches. The coupon rates were fixed at 0.59% and 0.66% per annum respectively. The transaction represents India Exim Bank’s first Standalone Samurai issuance (without any guarantee) since 2006.
  • As on March 31, 2020, the Bank had a pool of foreign currency resources equivalent to USD 12.09 billion and outstanding rupee resources of 18,430 crore.
  • Rating: India Exim Bank has the highest ratings (AAA) / (A1+) for Rupee debt instruments and its international ratings are at par with Sovereign - Moody’s: Baa3 (Negative); S&P: BBB-(Stable); Fitch: BBB-(Negative); JCRA: BBB+ (Stable).

EXPORT FACILITATION

  • During FY 2019-20, the Bank conducted 24 seminars for exporters, with themes broadly classified into export capability creation, business opportunities, industry, country & region focus, and export potential of Indian states.
  • India Exim Bank, under its grassroots initiatives, has been supporting and assisting rural artisans and craftsmen of handicraft products to widen their domestic as well as international presence by organizing design, skill-building and training workshops. The Bank supported six skill development programmes during the year, some of them were for weavers engaged in ‘Kalamkari’ art, in Pedana village of Andhra Pradesh; artisans of Rangsutra Crafts India Limited in Barmer, Bikaner, Srinagar & Varanasi; for farmers and artisans in Pithoragarh district of Uttarakhand for Kumaon Earthcraft Cooperative (Earthcraft).
  • The Bank assists in identification of market opportunities overseas and seeks to help Indian firms in their globalization efforts by proactively assisting in locating overseas distributors / buyers / partners for their products and services on a success fee basis. One of the highlights during the year was the assistance provided for development of a Lacustrine Fisheries Industry in Kibouo Lake Dalao city in Abidjan, Cote d’Ivoire.

ADVISORY AND CONSULTANCY SERVICES

  • India Exim Bank and the United Nations Development Programme (UNDP) are jointly implementing a project on “Capacity Building of MSMEs in North East India for Export Competitiveness”. Some of the key initiatives under this project during FY 2019-20 include: partnering with several pan-India institutions to identify opportunities for MSMEs; conducting studies to strengthen agricultural value chain; documentation of cluster activities of agriculture, handloom and handicraft sectors; and creation of a UNDP-India Exim Bank Network of Social Entrepreneurs in Mizoram and Assam.
  • The Bank has been engaging with various state governments to evaluate the state-level export performance and making strategies for development of their trade competitiveness. In the recent years, the Bank has developed export strategy papers for the state governments of Andhra Pradesh, Madhya Pradesh, Rajasthan and West Bengal. In FY 2019-20, India Exim Bank’s Study titled ‘Promoting Exports from Bihar: Insights and Policy Perspectives’ was released in Patna. The Bank also released 19 research studies during the year on various sectors, countries and macro-economic issues relevant to international trade and investment.
  • Following a request from the Kingdom of Saudi Arabia, during FY 2019-20, India Exim Bank completed a consultancy assignment to tailor the financing programs for its newly launched Saudi EXIM Bank.
  • During the year, the Bank organised skill enhancement programs for officers from diverse groups of Ghana Export-Import Bank (Ghana Exim), as a follow-on to its capacity building assignment for Ghana Exim.
  • The Bank’s Exim Mitra portal provides the exporters and importers an effective, single gateway to a wide range of trade information services. The portal contributes to the ongoing efforts towards reducing the asymmetry in information and availability of trade finance and credit insurance facilities amongst MSME entrepreneurs. 

NEW INITIATIVE

  • During the Union Budget in February 2020, Hon’ble Finance Minister had announced a scheme of ₹ 1,000 crore for promoting Indian companies with export potential, to be anchored by India Exim Bank together with SIDBI. Both the institutions would contribute ₹ 50 crore each, which would be utilised towards equity and technical assistance. Debt-funding of ₹ 900 crore from banks would also be made available under the scheme. The initiative christened as the ‘Ubharte Sitaare Programme’ will be led by India Exim Bank.

COVID-19 RELIEF INITIATIVES

  • During FY 2019-20, India Exim Bank made a donation to the PM-Cares Fund for COVID-19 relief. The Bank’s staff members contributed an average of 5.6 days salary and the Bank matched and rounded off the donation to 1 crore to the PM Cares Fund.
  • Many projects financed by India Exim Bank are providing support to combat COVID-19. Welspun India Limited, one of the leading textile companies and exporters of India, is manufacturing 3-ply masks using non-woven material at its Advanced Technical Textile site, which was financed by India Exim Bank. Rivatex East Africa Limited, supported under a Line of Credit to the Government of Kenya, is making and supplying masks, hospital bed sheets to Kenya Medical Supplies Authority (KEMSA).

SOCIALLY RELEVANT INITIATIVES

  • During FY 2019-20, India Exim Bank partnered with the Don Bosco Institute of Technology to set up a low-cost sanitary napkin making facility in Jawhar, Palghar. The facility made the essentials of personal hygiene accessible to the local women and also created a few job opportunities for the women producers as they marketed and sold the product.
  • The Bank partnered with advocate and environment activist Mr. Afroz Shah for beach clean-up activities. Around one-third of the Bank’s staff in Mumbai along with their family members joined for the clean-up drives at Versova beach and Dana Pani beach in Malad.
  • The Bank in association with the Tata Memorial Hospital organised blood donation drives in Mumbai. A blood donation drive was also organised in the Bank’s New Delhi office.

 

For more information, please contact: Mr. Swarup Chakraborty, Assistant General Manager, Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400005; Phone +91-22-22172830; E-mail: ccg@eximbankindia.in.